New Delhi4 hours ago
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Bank of Baroda has launched a new deposit scheme named 'Bob Utsav Deposit Scheme'. Under this scheme, on making FD for 400 days, 7.30% interest will be given to general citizens, 7.80% to senior citizens and 7.90% interest to super senior citizens.
SBI launches 'Amrit Vrishti' deposit scheme
State Bank of India (SBI) has also launched a new deposit scheme named 'Amrit Vrishti'. Under this scheme, 7.25% annual interest will be given on making FD for 444 days. Whereas senior citizens will be given interest at the rate of 7.75% per annum.
Keep these 3 things in mind while making FD
1. It is important to choose the right tenure
Before investing in FD, it is important to think about its tenure. This is because if investors withdraw before maturity, they will have to pay a penalty. If the FD is broken before it matures, a penalty of up to 1% will have to be paid. This may reduce the total interest earned on the deposit.
2. Do not invest all the money in one FD
If you are planning to invest Rs 10 lakh in FD in any one bank, then instead invest in 8 FDs of Rs 1 lakh each and 4 FDs of Rs 50 thousand each in more than one bank. With this, if you need money in between, you can arrange for the money by breaking the FD midway as per your need. The rest of your FD will remain safe.
3. Tax exemption is available on 5 year FD
5 year FD is called Tax Savings FD. By investing in this, you can claim a deduction of Rs 1.5 lakh from your total income under Section 80C of the Income Tax Act. Understand it in simple language, you can reduce up to Rs 1.5 lakh from your total taxable income through Section 80C.
